U.S. refiners have helped absorb the recent flood of domestic crude oil by building new capacity and using more of their existing capacity. According to the Energy Information Administration, gross refinery inputs increased by one million barrels per day between 2010 and 2014 — a period in which U.S. oil production grew by 3.2 million barrels per day. Nearly 75% of the increase in gross inputs is attributable to a four-percentage-point increase in refinery utilization. The rest is the result of a 0.2% increase in crude distillation unit (CDU) capacity. Total CDU capacity reached 18 million barrels per day last year.
The U.S. is expected to add more than 100,000 barrels per day of refining capacity this year. Domestic oil production, however, is expected to slow as drillers adjust to the recent oil price collapse.
MORE REFINING NEWS: PBF Energy to buy Chalmette Refinery from ExxonMobil, PDVSA
